project of chirag

8/14/2019 Project of Chirag

1/39

A

PRODUCT PROJECT REPORT

ON

BEARINGS

Prepared by

Kotadiya chirag j.

Class

T.Y. B.B.A.

Academic year

2009-10Roll no

33

Seat no

Collage

Shree gyanyagna collage of science of management, Rajkot

Submitted to

Saurastra University

Guided by

Prof. Namita talsaniya

1


2/39

DECLARATION

I, undersigned KOTADIYA CHIRAG as a management student of T.Y. B.B.A.

declare that the product project report as per the saurastra universitys rules andregulation and syllabus of T.Y. B.B.A. which is prepared by me and with the valuable

guidance of prof. namita talsaniya.

The product project report on the BEARINGS is submitted to gyanyagna collage

of science and management, B.B.A. department, Rajkot.

This is my original work and not submitted to any other collage or university.

Date:-

Place: - Rajkot

Chirag kotadiya

2


3/39

PREFACE

In todays life management is very much important. Management is the backbone

of any organization or any activity done. The real success of any management is lies inapplying the professional management in all managerial activities. As we move in to the

era of intense competition and high performance expectations. It is important that we

develop the winning edge.

Hence toattaion this objectives and to have the out look of all interactive of

corporate world. I have prepared the product project report on BEARINGS. I have tried

my best and have applied all my efforts, knowledge and sources available in this product

project report.

3


4/39

ACKNOWLEDGEMENT

I am very much thankful to all those people who helped me in preparing the

product project report on BEARING.I am obliged to our project guide prof. namita talsaniya for giving the valuable

guidance in furnishing this project. I am also thank full to my all those friends and other

persons who directly or indirectly guide me to make my product project report more and

more improving.

4


5/39

INDEX

Sr.no. Particulars Page no.

1 Introduction to smallscale industry

6

2 Project at a glance 7

3 Promoters back ground 8

4 Basis and presumption 10

5 Implementation schedule 11

6 Location justification 12

7 Product detail 13

8 Management sat up 14

9 Market analysis 15

10 Technical aspects 1611 Financial details 2112 Risk factor 37

13 Future plan 38

5


6/39

1. INTRODUCTION TO SMALL SCALE INDUSTRY

An industrial unit whose capital investment in plant and machinery is up to 5

crores of rupees are known as the small scale industry. For the nits supplying the spareparts and other components to the medium and large scale industry. The limit is also

covers only investment in the plant and machinery. Land and factory building are

excluded because there are wide variations of land prices at different places.

Small scale industry is occupying an important place in the industrial development

of backward or less economies like India. Its important is given below.

The capital requirement to start the S.S.I. is lower in comparison of the medium

scale and large scale unit.

Less capital is requiring per unit of labor. Hence small scale units can generate

large volume of the employment.

Small scale industries utilize local materials and resources therefore it does not

require foreign exchange to import materials and resources.

It caters to local needs in a better way as per the local customs and traditions.

6


7/39

2. PROJECT AT GLANCE

Units name: - Xtreme enterprise

Address for communication: - Q 35, G.I.D.C. metoda,

Kalawad road,

Ta. Lodhika,

Dist. Rajkot 360005

Type of unit: - partnership firm

Product: - Ball Bearings

S.S.I. registration no. : - has been applied forSubsidy registration no: - has been applied for

Bankers: - State bank of India

I.D.B.I.

Cost of project: - 49, 01,200

7


8/39

3. PROMOTERS BACKGROUND

PARTNER 1

Name : - kotadiya chirag j.

Age :- 21 years

Education qualification: - B.B.A. with advanced marketing management

Address: - shree ram

Maruti Park 1,

B/h big bazaar,

150ft ring road,

Rajkot 360005.

Work division: - administration, accounting, marketing & selling

Capital contribution: - 25%

Share in profit and loss: - 50%

8


9/39

PARTNER - 2

Name: - dobariya kirit m.

Age: - 21 years

Education qualification: - B.E. (mechanical)

Address: - 402, mangal bhuvan appt.

Kalawad road,

Rajkot 360005.

Work division: - quality control, manufacturing management, material handling.

Capital contribution: - 25%

Share in profit and loss: - 50%

9


10/39

4. BASIS AND PRESUMPTION Wages are to be paid on the basis of prevailing wage rate in market.

Interest rate on borrowed capital is on the basis of IDBI banks rate on 15 June

2009. Building is assumed on the basis of current rent prevailing in market on 15 June

2009.

The factory hours will be of 12 hours of a day.

25 working days in a month is assumed

280 working days in a year are assumed.

10


11/39

5. IMPLEMANTATION SHEDULE

Particulars days

Selection of site 15 daysPreparation of project 45 days

Acquiring of land and building 30 days

Registration of SSI 30 days

Acquiring of finance 60 days

Arrangement of machinery & equipments 45 days

Installation of machines & electrification 60 daysRecruitment of personal & labor 45 days

11


12/39

6. LOCATION JUSTIFICATION

The entrepreneur must select an ideal location n at the time of launching of the

enterprise. Location of the factory is an important factor affecting the businessorganization. An ideal means a scientific selection includes nature and type of the

business, opening advantage, economic factors and profit orientation.

The cost of the production and the cost of the distribution play an important role in the

profit maximization. Even if with the adequate capital on hand, if the location is

unfavorable, will affect are profitability which may sometimes results into the closed

down of the unit.

It is preferable to start in Rajkot due to several factors that are as under:

The essential raw material require for the manufacturing of bearing like inner,outer, races, rollers, cages, washers etc. are easily available within the city itself.

There is labor available at cheap price and available at cheap price and all

technical staff can be acquired from Rajkot also.

Electricity, banking, water, and internet services are available in the city.

The other major factor is that there is big market is available for bearing within the

Rajkot i.e. local market itself is wide.

For ex, oil engines industries existing in Rajkot and bearing are use in its

manufacturing.

12


13/39

7. PRODUCT DETAILS

Bearing is a mechanical element that permits relative motion between two parts,

such as the shaft and the housing, with minimum friction. The function of bearing is as

under.

The bearing ensures free rotation of the shaft or the axle with minimum friction

Bearing supports the shaft or the axle and holds it in correct position

The bearing takes up the forces that act on the shaft or the axle and transmits them

to the foundation.

So, bearing is a vital component in any rotation mechanism of machinery.

13


14/39

8. MANAGEMENT SETUP

The two partners are entitled to take the post of directors their names are

Mr. kotadiya chirag j. Mr. Dobariya kirit m.

The capital ratio of both partners will be 50 : 50 and profit and loss will beshared as per capital sharing ratio.

Mr. chirag kotadiya will look after the marketing and trade setting andadministrative and accounting work as he is qualifying in B.B.A.

Mr. kitit dobariya will look after the production management, quality

control and technical matter of factory and material management.

14


15/39

9. MARKET ANALYSIS

A) HISTORY

In India bearing industry can be traced to a little over 50 years. The firstunit to commercial production was national bearing co. ltd., Jaipur. Some smallscale units in panjab and some other places also manufacturing bearings. Bearingsindustry developed tremendously in small scale sector during the late eighties and beginnings of nineties has mostly developed in Gujarat state and that tooparticularly in saurastra region.

The raw material used for manufacturing bearing are produced fromMahindra and Mahindra, Bihar alloys, special sheets etc.

As against global range 1, 50,000 different types of bearings are used inIndia. The indigenous production of bearing is limited to about 700 types.

B) CURRENT MARKET POSSITION

The current market position of Indian bearing industry is worth rs. 3500crore. 45% of the market segment is covered by automotive segment andremaining 55% of the market segment is covered by industrial demand. Inautomotive segment 50% of market is organized segment manufacturers 15% areunorganized segment in India and remaining 35% of demand is satisfied byimport.

C) FUTURE MARKET POSSITION

Out of the total revenues in the automotive segment, 60% of the revenuesare contributes by original equipment manufacturers and the remaining 40% is bythe demand from the after market. There has been a growth of 15% in the aftermarket segment and OEMs demand has increased by more then 25%

The market for automotive bearing is growing at almost 27% per annum.This is mainly because of multiple models in every vehicles segment entering themarket.

Hence, a definite increase in the original equipment segment is antiseptic.After market demand for automotive bearing is increasing, but at a slower rate as

compared to the growth in vehicles population manufacturers are expectingsustained growth of 15% in the after market mainly due to increase in populationof two wheelers, passengers cars and utility vehicles segment.

15


16/39

10.TECHNICAL ASPECTS

A) MANUFACTURING PROCESS.

Material for RacesRollers from mill.

Turning ofRaces

Heat Treatment

Grinding

Super Finishing ofRaces + Rollers

100% Noise testing before dispatch+

Dust Proof Assay Line.+

Imported washing line

Distribution

There are four major parts to a standard ball bearing: the outer race, the rolling balls, the innerrace, and the cage.

16


17/39

Races

Both races are made in almost the same way. Since they are both rings of steel, the

process starts with steel tubing of an appropriate size. Automatic machines similar tolathes use cutting tools to cut the basic shape of the race, leaving all of the dimensionsslightly too large. The reason for leaving them too large is that the races must be heat

treated before being finished, and the steel usually warps during this process. They can bemachined back to their finished size after heat treating.

The rough cut races are put into a heat treating furnace at about 1,550 degrees Fahrenheit

(843 degrees Celsius) for up to several hours (depending on the size of the parts), thendipped into an oil bath to cool them and make them very hard. This hardening also makesthem brittle, so the next step is to temper them. This is done by heating them in a secondoven to about 300 degrees Fahrenheit (148.8 degrees Celsius), and then letting them coolin air. This whole heat treatment process makes parts which are both hard and tough.

After the heat treatment process, the races are ready for finishing. However, the races are

now too hard to cut with cutting tools, so the rest of the work must be done with grindingwheels. These are a lot like what you would find in any shop for sharpening drill bits andtools, except that several different kinds and shapes are needed to finish the races. Almostevery place on the race is finished by grinding, which leaves a very smooth, accuratesurface. The surfaces where the bearing fits into the machine must be very round, and thesides must be flat. The surface that the balls roll on is ground first, and then lapped. Thismeans that a very fine abrasive slurry is used to polish the races for several hours to getalmost a mirror finish. At this point, the races are finished, and ready to be put togetherwith the balls.

Balls

The balls are a little more difficult to make, even though their shape is very simple.

Surprisingly, the balls start out as thick wire. This wire is fed from a roll into a machine

that cuts off a short piece, and then smashes both ends in toward the middle. This processis called cold heading. Its name comes from the fact that the wire is not heated beforebeing smashed, and that the original use for the process was to put the heads on nails(which is still how that is done). At any rate, the balls now look like the planet Saturn,with a ring around the middle called "flash."

The first machining process removes this flash. The ball bearings are put between the

faces of two cast iron disks, where they ride in grooves. The inside of the grooves arerough, which tears the flash off of the balls. One wheel rotates, while the other one staysstill. The stationary wheel has holes through it so that the balls can be fed into and takenout of the grooves. A special conveyor feeds balls into one hole, the balls rattle around thegroove, and then come out the other hole. They are then fed back into the conveyor for

many trips through the wheel grooves, until they have been cut down to being fairlyround, almost to the proper size, and the flash is completely gone. Once again, the ballsare left oversize so that they can be ground to their finished size after heat treatment. Theamount of steel left for finishing is not much; only about 8/1000 of an inch (.02centimeter), which is about as thick as two sheets of paper.

The heat treatment process for the balls is similar to that used for the races, since the kind

of steel is the same, and it is best to have all the parts wear at about the same rate. Likethe races, the balls become hard and tough after heat treating and tempering. After heat

17
http://www.answers.com/topic/furnacehttp://www.answers.com/topic/brittlehttp://www.answers.com/topic/ovenhttp://www.answers.com/topic/grindhttp://www.answers.com/topic/abrasivehttp://www.answers.com/topic/rattlehttp://www.answers.com/topic/oversizehttp://www.answers.com/topic/centimeterhttp://www.answers.com/topic/furnacehttp://www.answers.com/topic/furnacehttp://www.answers.com/topic/brittlehttp://www.answers.com/topic/brittlehttp://www.answers.com/topic/brittlehttp://www.answers.com/topic/ovenhttp://www.answers.com/topic/ovenhttp://www.answers.com/topic/ovenhttp://www.answers.com/topic/grindhttp://www.answers.com/topic/grindhttp://www.answers.com/topic/grindhttp://www.answers.com/topic/abrasivehttp://www.answers.com/topic/abrasivehttp://www.answers.com/topic/abrasivehttp://www.answers.com/topic/rattlehttp://www.answers.com/topic/rattlehttp://www.answers.com/topic/rattlehttp://www.answers.com/topic/oversizehttp://www.answers.com/topic/oversizehttp://www.answers.com/topic/oversizehttp://www.answers.com/topic/centimeterhttp://www.answers.com/topic/centimeterhttp://www.answers.com/topic/centimeterhttp://www.answers.com/topic/furnace


18/39

treatment, the balls are put back into a machine that works the same way as the flashremover, except that the wheels are grinding wheels instead of cutting wheels. Thesewheels grind the balls down so that they are round and within a few ten thousandths of aninch of their finished size.

After this, the balls are moved to a lapping machine, which has cast iron wheels and uses

the same abrasive lapping compound as is used on the races. Here, they will be lapped for8-10 hours, depending on how precise a bearing they are being made for. Once again, theresult is steel that is extremely smooth.

Cage

Steel cages are stamped out of fairly thin sheet metal, much like a cookie cutter, and then

bent to their final shape in a die. A die is made up of two pieces of steel that fit together,with a hole the shape of the finished part carved inside. When the cage is put in betweenand the die is closed, the cage is bent to the shape of the hole inside. The die is thenopened, and the finished part is taken out, ready to be assembled.

Plastic cages are usually made by a process called injection molding. In this process, a

hollow metal mold is filled by squirting melted plastic into it, and letting it harden. Themold is opened up, and the finished cage is taken out, ready for assembly.

Assembly

Now that all of the parts are made, the bearing needs to be put together. First, the inner

race is put inside the outer race, only off to one side as far as possible. This makes a spacebetween them on the opposite side large enough to insert balls between them. Therequired number of balls is put in, then the races are moved so that they are bothcentered, and the balls distributed evenly around the bearing. At this point, the cage isinstalled to hold the balls apart from each other. Plastic cages are usually just snapped in,while steel cages usually have to be put in and riveted together. Now that the bearing isassembled, it is coated with arust preventative and packaged for shipping.

18
http://www.answers.com/topic/cookie-cutterhttp://www.answers.com/topic/injection-mouldinghttp://www.answers.com/topic/injection-mouldinghttp://www.answers.com/topic/hardenhttp://www.answers.com/topic/riveted-1http://www.answers.com/topic/rusthttp://www.answers.com/topic/rusthttp://www.answers.com/topic/cookie-cutterhttp://www.answers.com/topic/cookie-cutterhttp://www.answers.com/topic/cookie-cutterhttp://www.answers.com/topic/injection-mouldinghttp://www.answers.com/topic/injection-mouldinghttp://www.answers.com/topic/injection-mouldinghttp://www.answers.com/topic/hardenhttp://www.answers.com/topic/hardenhttp://www.answers.com/topic/hardenhttp://www.answers.com/topic/riveted-1http://www.answers.com/topic/riveted-1http://www.answers.com/topic/riveted-1http://www.answers.com/topic/rusthttp://www.answers.com/topic/rusthttp://www.answers.com/topic/rust


19/39

B) PRODUCTION CAPICITY

Name of the

product

Rate(rs) Daily

production(units)

Monthly

production

Production

par annum

units

Total

value(rs)

Ball bearing 110 380 9500 114000 1,25,40,000

19


20/39

C) DETAILS OF RAW MATERIAL

PARTICULARS AMT (rs.)

Forgings( races )9500 sets @ 35

3,32,500

Rollers ( balls )

24000 pieces @ 10

2,40,000

Cages

19000 pieces @ 4

76,000

Total Raw material (p.m.) 6,48,500

20


21/39

11.FINANCIAL DETAILS

A) LAND & BUILDING

As the financial capacity of partners are not enough to purchase the land &building. So, they will hire land and building on rent.

The details of land and building are as under.

1) Total area covered - 1000 sq. meter 2) Shade covered - 800 sq. meter

3) Open space - 200 sq meter 4) Monthly rent - 12,000 p.m.5) Total rent - 1, 44,000 p.m.

21


22/39

B) MACHIMARY & EQUIPMENT

NAME OFMACHINE QUANTATY NO. HORCE POWER PRICE

Surface grinding

machine

1 10 h.p. 4,00,000

Center less grinding

machine

1 5 h.p. 4,00,000

Bore grinding

machine

1 3 h.p. 4,00,000

External grinding

machine

1 3 h.p. 4,50,000

Honing machine 1 2 h.p. 3,00,000Etching machine 1 1 h.p. 7,000

Belt grinding

machine

1 1 h.p. 5,000

Centrifugal

(cleaning machine)

1 1 h.p. 10,000

Lathe machine 1 2 h.p. 15,000

Drill machine 1 - 7,000

Bench machine 1 - 4,000

Hardness tester 1 - 10,000

Inspection, qualitycontrol equipment

gauges etc.

- - 2,00,000

Tools, spindles,

fixtures.

- - 50,000

Erection &

installation

- - 2,00,000

Furniture & office

equipments

- - 55,000

Total 25,13,000

Pro- operativeexpense

50,000

Total 25,63,000

Total investment in fixed assets

22


23/39

Machinery and equipment 25, 63,000

23


24/39

INVESTMENT IN SHORT TERM ASSETS

A) Cost of raw material (p.m.)


Forgings( races )

9500 sets @ 35

3,32,500

Rollers ( balls )

24000 pieces @ 10

2,40,000

Cages

19000 pieces @ 4

76,000


24


25/39

B) Salary and wages

Particulars Rate (p.m.) No. of persons Total salary

(p.m.)

Salary to partners 5,000 2 10,000

Supervisor 3,500 1 3,500Skilled workers 3,000 6 18,000

Unskilled workers 2,500 8 20,000

Total 51500

Prerequisitesof

salaries @ 10%

5,150

Total salary 5,6650

C) UTILITIES

Power consumption

4500 units p.m. @ 4.50 rs.

4000 4.5 = 20,250

25


26/39

D) Other expanses

Particulars Rate (p.m.)

Rent 12000

Consumable like grinding wheel,kerosene, grease, cuttings oil etc.

10,000

Telephone exp. 1,500Repairs and maintenance 3,500

Advertisement & publicity 5,000

Packing and forwarding 9,000

Marketing and sales 3,500

Traveling & conveyance 4,500Transport of raw material 1,000

Insurance 1,500

Miscellaneous expanses 1,500Postage and stationary 1,000

Total 54,000

26


27/39

E) TOTAL INVESTMENT IN WORKING CAPITAL

PARTICULARS AMT (RS)

Raw material 6,48,500

Salaries and wages 56,650Utilities 20,250

Other expenses 54,000

Total 7,80,400

Working capital for 3 months

7, 79,400 3 = 23,38,200

27


28/39

TOTAL COST OF PROJECT

Particulars Amt (rs)Fixed cost 25,63,000

Working capital for 3 months 23,38,200

Total 4901200

28


29/39

DETAILS OF MEANS OF FINANCE

Particulars Amt (rs.)

Owned capital

Partner 1 (25%) 12,25,300

Partner 2 (25%) 12,25,300Borrowed capital (50%) 24,50,600

Total 49,01,200

Interest on borrowed capital (21%) =5, 14,626 p.a.

29


30/39

TOTAL COST OF PRODUCTION

A) RAW MATERIAL


Forgings( races )

9500 sets @ 35

3,32,500

Rollers ( balls )

24000 pieces @ 10

2,40,000

Cages

19000 pieces @ 4

76,000


Total raw material (p.a.)6,48,500 12

7,78,2000

B) RENT & INSURANCE


Rent 12,000

Insurance 1,500

Total (p.m.) 13,500Total (p.a.)

13,500 12

1,62,000

30


31/39

C) Salary and wages

Particulars Rate (p.m.) No. of persons Total salary

(p.m.)

Salary to partners 5,000 2 10,000

Supervisor 3,500 1 3,500Skilled workers 3,000 6 18,000

Unskilled workers 2,500 8 20,000

Total 51500

Prerequisites of

salaries @ 10%

5,150

Total salary 56,650

Total (p.a.)

56,650 12

6,79,800

D) ADMINISTRATIVE EXPENCES

PARTICULARS AMT. (rs.) (p.m.)

Postage & stationary 1,000Telephone exp. 1,500

Travelling expenses 4,500

Miscellaneous exp. 1,500

Total exp (p.m.) 8,500

Total (p.a.)

8,500 12

1,02,000

31


32/39

E) SELLING AND DISTRIBUTION

PARTICULARS AMT(rs.)Marketing and sales 3,500

Advertisement & publicity 5,000

Packing & forwarding 9,000

Total (p.m.) 17,500

Total (p.a.)

17,500 12

2,10,000

F) REPAIRS AND MAINTANANCE

Repairs and maintenance

3500 12 = 42,000 (p.a.)

G) CONSUMABLES

Gridding wheels, kerosene, grease, cutting oil, etc.

10,000 12 = 1, 20,000

32


33/39

TOTAL COST OF PRODUCTION

PARTICULARS AMT (rs.) (p.a.)Raw material 77,82000

Rent & insurance 1,62,000Salary & wages 6,79,800

Administration exp. 1,02,000

Selling and distribution 2,10,000Repairs and maintenance 42,000

Consumable 1,20,000

Total cost (p.a.) 91,03,800

33


34/39

COST OF RUNNING BUSINESS

Particular Amt (rs)Total cost of production 91,30,800

Interest on borrowed capital

24,50,600 21%

5,14,626

Depreciation on office equipment

55,000 20%

11,000

Depreciation on machinery &

equipment

19,98,000 10%

1,99,800

Depreciation on tools, fixtures,

measuring and testing equipment

4,60,000 20%

92,000

Total cost 99,21,226

34


35/39

TURN OVER


Yearly sales of 1, 14,000 pcs. @ 110 1,25,40,000

Yearly sales of scrap 1,50,000

Total turnover (p.a.) 1,26,90,000

NET PROFIT

PARTICUALRS AMT.

Sales 1,26,90,000

Less: cost of running business 99,21,226

Total 27,68,774Less: 35% tax 9,69,070

Net profit 17,99,704

35


36/39

BREAK EVEN ANALYSIS

Particulars Amt(rs.)

Rent 1,44,000

depreciation on office equipment 11,000

Depreciation on machinery 1,99,800Depreciation on tools, fixtures, measuring

& testing equipment

92,000

40% of salaries& wages 2,71,92040% of other contingent exp. 4,98,000

Insurance 18,000

Total fixed cost 17,49,346

BREAK EVEN POINT =

Fixed cost 100

Fixed cost + net profit

17, 49,346= 100

17, 49,346 + 17,99,704

= 49.29%

36


37/39

CALCULATION OF DIFFERENT RATIOS

NET PROFIT RATIO

Net profit= 100

Sales

17, 99,704= 100

1, 26, 90,000

= 14.18%

RATE OF RETURN

Net profit

= 100

Cost of production

17, 99,704

= 10049, 01,200

= 36.72 %

37


38/39

12 RISK FACTOR

Due to improved technology, improved fuel quality and better maintenance of

vehicles it reduces replacement rate which turn in to slower growth in after marketsegment.

Vehicles owners prefer imported bearings due to lower costs. Cost different is

almost 50% between domestic bearing and imported from chinas bearings

The bearing industry also suffers from structural deficiencies, which are making it

less competitive in the global market

In this industry, there is preveling high competition in market. There are many

huge companies are involved in this business.

38


39/39

13 FUTURE PLANS

The future plan of the company will be to become world class bearing and

auto parts manufacturing company.The company will expand its market up to international level

project of chirag

Documents